Launched in 2021, Seraphim Space Investment Trust (SSIT) invests in early-stage space technology companies with a global remit.
The trust focuses on private growth businesses with the potential to dominate on a global scale and category leaders with first-mover advantage in sectors such as communications, sustainability and cyber security.
Matthew Stanesby, managing director at Close Brothers Asset Management, comments: “Seraphim provides access to early-stage growth companies looking to address some of the greatest challenges of today, namely digital infrastructure, climate change, defence, and food production.
“Seraphim has invested in a portfolio of private companies that are building solutions to these problems on the back of the reduced cost of launching satellites (thanks to companies like SpaceX).”
Portfolio companies include Altitude Angel which is developing solutions for the safe use of automated drones in global airspace, while Pixxel provides hyper-spectral imaging technology to monitor deforestation, water resources and crop health.
Mr Stanesby adds: “What we found appealing about Seraphim was their ability to follow companies through multiple funding rounds, giving them a better chance of identifying winners at the later pre-IPO and post-IPO stages that the trust focuses on.
“It’s important to stress that the trust has been able to get a decent level of companies into its portfolio and access a diverse range of opportunities, even at this early stage in its life, with circa 20 holdings.”
However, Seraphim is one of the more speculative and higher-risk investments and, to date, has yet to deliver a track record of growth in net asset value. As a result, it is currently trading at the highest discount to NAV of more than 60%.